Dividend Declaration Hyperion 1997 Term Trust, Inc. - Jan. 13, 1995.

NEW YORK--(BUSINESS WIRE)--Jan. 13, 1995--Dividend Declaration Hyperion 1997 Term Trust, Inc. - January 13, 1995

The Board of Directors of the Hyperion 1997 Term Trust, Inc. (NYSE:HTA) today declared a new monthly dividend of $0.04583 per share. The dividend which is payable on January 30, 1995, to shareholders of record on January 23, 1995 was lowered due to the decreased benefit of leverage due to an increased cost of financing attributable to the increase in the Federal Funds rate over the past year. This dividend represents a monthly return of 5.5% (an annualized rate) on the Trust's initial offering price of $10.00 per share. This change in dividend rate is the first such change by the Trust in over a year. The current yield on shares of the Trust based on the NYSE closing price of $7.125 on January 12, 1995 is 7.72%, which is 17 basis points greater than the current yield on the 2-Year Treasury Note. The net asset (NAV) per share is currently $7.93.

The Hyperion 1997 Term Trust, Inc. is a diversified, closed-end management investment company. The Trust's investment objectives are to provide shareholders with a high level of current income consistent with investing in securities of the highest credit quality and to return at least $10.00 per share (the Trust's initial public offering price per share) to investors on or shortly before November 30, 1997. All securities in which the Trust invests will be either (i) issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities or (ii) at the time of investment, rated in the highest rating category by a nationally recognized agency (e.g., AAA by Standard & Poor's Corporation or Aaa by Moody's Investors Service, Inc.).

The Trust is actively managed to take advantage of relative value opportunities in various sectors of the mortgage market. The Trust is currently managed with an average duration of 1 to 3 years. Currently the average life of the securities in the portfolio is approximately 3.5 years.

Portfolio Breakdown as of January 12, 1995:

As a percentage of investments

Mortgage-Backed Securities  20.3%

Collateralized Mortgage Obligations (CMOs) 30.4%

Municipal Securities 17.9%

Asset-Backed Securities 19.5%

Adjustable Rate Mortgages (ARMs) 4.2%

Interest-Only Securities (IOs) 4.1%

PAC IOs 1.5%

Principal-Only Securities 2.1%

The Trust's investment adviser is Hyperion Capital Management, Inc., a registered investment adviser based in New York with approximately $4 billion in assets under management. Additional information on the Trust's assets and performance is available by calling Hyperion Fund Marketing at (800) HYPERION or by calling Prudential Mutual Fund Management, Inc. [phone].

CONTACT: Hyperion 1997 Term Trust Inc.

Hyperion Fund Marketing, (800) HYPERION

or

Prudential Mutual Fund Management, Inc., [phone]